10.05.2024

Slower sales at Hiab

Cargotec - the owner of Hiab loader cranes and Kalmar port handling equipment manufacturer - has published its first quarter results.

Hiab

Total revenues: Hiab reported a four percent fall in revenues for the three months to the end of March, compared to the same quarter last year coming in at €415 million.

Order intake for the period improved slightly, rising one percent to €386 million but leaving the order book/backlog four percent lower at €770 million.

Operating profit however, jumped 12 percent to €68.7 million.

Kalmar

Total revenues for Kalmar dropped 10 percent to €439 million, with order intake slipping 15 percent to €402 million , leaving the backlog/order book at €971 million down five percent on the year. Operating profit plummeted 19 percent to €51 million.

Cargotec as a whole, which also includes MacGregor, saw revenues slip two percent to €1.06 billion, but pre-tax profits jumped 20 percent to €115.3 million. Net debt however plunged 86 percent to just €57 million.

Chief executive Casimir Lindholm said: “The first quarter provided a strong start for the year. Hiab, Kalmar and MacGregor all improved their comparable operating profit margins. All businesses combined to deliver the best first quarter in terms of operating profit in Cargotec’s history. This was the fifth consecutive quarter with good results, despite complex business environment. Solid execution continued across business areas and the results were also supported by cost saving actions we launched in October last year. The actions are now to a large extent implemented.”
In Kalmar, strong profitability continued, and demand was stable for the third quarter in a row. Demand for mobile equipment used in industrial operations and small and mid-sized terminals remained good and we continue to see delayed decision making in larger orders and destocking in the distribution customer segment.”

"In Hiab, the quarter was the sixth in a row with a stable level of demand Hiab’s sales decreased slightly while service sales continued to grow. Despite lower sales, Hiab’s comparable operating profit increased by 12 percent driven by successful management of inflationary pressures and tight cost control.”

“The planned separation of our core businesses Kalmar and Hiab into two world leading standalone companies is progressing according to the plan, and we are expecting to reach major milestones this year. The completion date of the demerger is expected to be 30 June. Alongside the separate listing of Kalmar, we will focus on finding a solution for MacGregor and preparing Hiab to become a standalone company.”

Vertikal Comment

This is mixed result from Hiab with lower sales but a strong improvement in profitability. The company also continues to make progress in its core crane business, is now pushing its marine crane business hard and has booked some good orders, but lags well behind Palfinger in this market. How this will develop over the next year or two will be interesting to watch.

As to the regular loader crane business, Hiab appears to be making some small gains on Palfinger as I battles to recapture the market leadership position that it lost a good few years ago.

The half year results should prove a good deal more informative than the first three months. In the meantime, Hiab is doing well.